What are FICO Scores?
FICO Scores are the most widely used credit scores. Each FICO Score is a three-digit number calculated from the data on your credit reports at the three major consumer reporting agencies—Experian, TransUnion, and Equifax. Your FICO Scores predict how likely you are to pay back a credit obligation as agreed. Lenders use FICO Scores to help them quickly, consistently and objectively evaluate potential borrowers’ credit risk.
Why is University Credit Union providing FICO Scores?
Nearly all lenders in the U.S., including UCU, use FICO Scores as the industry standard for determining credit worthiness. Reviewing your FICO Scores can help you learn how lenders view your credit risk and allow you to better understand your financial health.
What goes into FICO Scores?
FICO Scores are calculated from the credit data in your credit report. This data is grouped into five categories; each of which has a different level of impact on your score.
- 35% - Payment history: Whether you've paid past credit accounts on time
- 30% - Amounts owed: The amount of credit and loans you are using
- 15% - Length of credit history: How long you've had credit
- 10% - New credit: Frequency of credit inquires and new account openings
- 10% - Credit mix: The mix of your credit, retail accounts, installment loans, finance company accounts and mortgage loans
What are score factors?
Score factors are delivered with a consumer’s FICO Score, these are the top areas that affected that consumer’s FICO Scores. The order in which the score factors are listed is important. The first factor indicates the area that most affected the score and the second factor is the next most significant influence. Addressing these factors can benefit the score.
Why is my FICO Score different than other scores I’ve seen?
There are many different credit scores available to consumers and lenders. FICO Scores are the credit scores used by most lenders, and different lenders may use different versions of FICO Scores. In addition, FICO Scores are based on credit file data from a consumer reporting agency, so differences in your credit files may create differences in your FICO Scores.
Why do FICO Scores fluctuate/change?
There are many reasons why a score may change. FICO Scores are calculated each time they are requested, taking into consideration the information that is in your credit file from a consumer reporting agency at that time. So, as the information in your credit file at that consumer reporting agency changes, FICO Scores can also change. Review your key score factors, which explain what factors from your credit report most affected a score. Comparing key score factors from the two different time periods can help identify causes for a change in a FICO Score. Keep in mind that certain events such as late payments or bankruptcy can lower FICO Scores quickly.
Will receiving my FICO Score impact my credit?
No. The FICO Score that UCU provides to you will not impact your credit.
How often will I receive my FICO Score?
Your FICO Score will be updated on a quarterly basis, when available.
Why is my FICO Score not available?
There are many possible factors as to why your FICO Score may not be available. Some of the common reasons are listed below:
- You are a new account holder and your FICO Score is not yet available
- Your credit history is too new
- You are not the primary account holder